Henrik Zeberg believes that the crypto market should prepare for a serious correction, since Donald Trump’s tariff strategy could lead to a recession in the United States.
“Now everything is ready for history to repeat itself. High US tariffs on imported goods in the 1920s and 1930s plunged the economy into recession, causing the biggest bubble in history to burst. If Trump increases tariffs on goods from other countries, as he promised, the cryptocurrency market will also suffer, realizing the “Bitcoin crash” scenario,” Zeberg said.
In his opinion, the Bitcoin rate could reach $115,000 in the medium term amid the excitement around Trump’s victory, but then there will be a sharp reversal and a long decline.
A new round of trade conflicts will provoke a slowdown in global GDP, aggravate unemployment problems in many countries, and investors will prefer to invest in more reliable assets than cryptocurrencies, the analyst believes.
If Trump does not fulfill his promises to develop the cryptocurrency industry, then the correction may turn out to be deeper than can be assumed at the moment, the expert pointed out.
Earlier, the head of the financial company Bianco Research, Jim Bianco, expressed skepticism about Bitcoin ETFs. According to him, the concentration of the first cryptocurrency in traditional finance should not be taken as a sign of its progress.
Source: Bits
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